Brian’s Tax Musings

Today I will talk a little about meals and entertainment.  Taking your client out to lunch or a ball game is a 50% deductible expense.  You have certain rules to follow to get the deduction, including documentation of the meeting or the event, what business was discussed, etc.  Here is a link that breaks it all down:

http://biztaxlaw.about.com/od/taxdeductionsatoz/a/mealentertain.htm

Some people like to keep a calendar of lunch meetings with clients, attach the receipt for lunch and write down what the lunch meeting was about.  Or get out the old scanner and set up a folder on your computer; just write the info on the receipt and scan it in.

This is an area the IRS looks at during a lot of business audits, so documentation is important, especially if you have a large deduction.

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